Shree Rajasthan Syntex Ltd
INTRODUCTION
- Brief Introduction of the company
Shree Rajasthan Syntex Ltd. is an integrated producer of textile raw material which include Synthetic spun yarn, cotton yarn and polypropylene yarn. The company has been growing for the last 3 decades with more than 3500 employees at 2 different manufacturing factories in Rajasthan., India.
- Industry Overview
The textile industry includes various segments of cotton, synthetic fibers, yarn manufacture etc. The Indian textile industry is one of the largest sectors in the Indian Economy which helps to increase employment and foreign earnings. This industry faces increasing competition, fluctuation in raw material price and global demand changes influence financial performance of textile companies in this industry.
- Purpose of the Analysis
The purpose of study is to understand and evaluate financial performance and overall information about Shree Rajasthan Syntex Ltd. This report will include financial analysis of income statement, balance sheet statement and cash flow with year on year comparison of company’s revenue.
COMPANY OVERVIEW
- Background and History
Shree Rajasthan Syntex Ltd. was founded in 1981. The company operates as a public limited company listed on the stock exchange. The company’s register office is located in Dungarpur, Rajasthan. They mainly operate around production of synthetic yarn and textile products used in fabric manufacturing.
- Business model
The company primarily operates through textile manufacturing enterprises. Procurement of raw material, processing on raw material and yarn production. After production, distribution and sale of finished goods which is the primary source of revenue for the business.
- Key Product and Services
1) Filament Yarn
2) Synthetic Blended Yarn
3) Fiber Drawn Yarn
- Market Positioning
Shree Rajasthan Syntex Ltd. operates in the mid-scale segment of the textile industry. Companies have their own established manufacturing base, their market share is limited compared to larger integrated textile companies. They have faced many production and financial challenges in recent years.
PROMOTERS / FOUNDER
Name | Designation | Professional background | Role in company |
Mr. Vikas Ladia | MD and CEO | Bachelor’s Degree from Manipal institute of technology | Planning strategies , managing operations, |
Mr. Anubhav Ladia | WTD and CFO | Bachelor of Commerce (SRCC) | Restructures financial position |
FINANCIAL ANALYSIS
- Income statement
(In Lakh’s)
Particular | FY2025 | FY2024 |
Income from operation | 1,676 | 3734 |
Exceptional item gain / loss | (86) | 11228 |
Total Expenses | (3,028) | (3,747) |
Profit Before Tax | (1,437) | 11,215 |
Net Profit / Loss | (1,408) | 11,287 |
Key Observations of Income Statement:
1) Revenue for FY25 is decreased as compare to FY24, total expenses decreased as compare to FY24
2) As a result company is in facing loss for last FY25 i.e. Rs.1408
- Balance sheet analysis
Particular | FY2025 | FY2024 |
Equity share capital | 2,801 | 2,801 |
Total Current Assets | 282 | 331 |
Total Current Liability | 1,562 | 1,926 |
Total ( End of FY) | 2,886 | 4,924 |
(In Lakh’s)
End of the FY25 –
1) Equity share capital: There is no change in Equity share capital.
2) Total Current Assets: Down by 14% as compared to FY24.
3) Total Current liability: Decreased by 27% in total current liability as compared to FY24.
- Cash Flow Statement
(In Lakh’s)
Cash / FY | FY2025 | FY2024 |
Operating | (405) | (5496) |
Investing | 720 | 922 |
Financing | (380) | (6337) |
Cash and Cash Equivalent (In the end ) | 24 | 89 |
Note –
1) Cash from operating and financing activity for both the financial year seem to be negative because of operating expenses and loan or borrowing repayment.
2) Cash flow from investing activity seems to be positive because of interest received for each year and financial assets and deposits with banks.
Key financial Ratio
1) Profit Ratio
ROE - Net profit / shareholder equity *100 = (16.64%)
2) Liquidity Ratio
Current Ratio – current assets / current liability = 0.23
3) Leverage Ratio
Debt to equity ratio – Total Debt / Shareholder equity = (13.90)
4) Efficiency Ratio
Assets turnover ratio – Revenue / Total assets = 0.75
- Year on year comparison
5. KEY INSIGHTS AND INTERPRETATION
- Strengths
1) Operational infrastructure for synthetic yarn production.
2) Established factories and markets for their product.
3) Experience management team in the company.
- Weakness
1) Declining revenue and production levels.
2) Profitability is low because of high liability.
- Risk factor
1) Financial risk arriving because of past insolvency proceedings.
2) Fluctuation in demand for textile products and continuous change in trend.
- Future Outlook
The company’s future performance is dependent on their financial restructuring, improved production efficiency and on demand for synthetic yarn products. Management strategic decisions will be important for a company's long term sustainability.
6. CONCLUSION
Final evaluation of financial condition
The company’s financial condition indicates that they are facing financial and operational loss, Revenue is declining and liabilities are increasing year by year. They need a successful completion of the insolvency resolution process to stabilize their performance.
Investment / Performance Perceptive
From an investor and stakeholders perspective, a company is looking high-risk for investment but has potential recoverable investment. Because of the high demand for textile products in the domestic market it depends on their improvement in operational and financial performance.
Sources
https://www.srsl.in/Core-Team.html
https://www.screener.in/company/503837/